U.s. Social Security Child Benefits

[OnMyWay]

Anybody collecting SSI benefits for their kids?  I really had no idea there was a very nice benefit available for retired old farts that have kids!

 

We know a couple, retired U.S. Navy FilAm and younger local wife.  They have 3 kids and they get USD $700+ for each kid, plus he has his SS and his Navy pension.  That is a nice retirement income over here!

 

For my daughter, it introduces another factor to consider when I have to decide about collecting SS.  Early SS can start at 62.5, with reduced benefit, and she will be 5 years old.  She can collect until she is 18.  Or, I wait to age 66.4 for full benefit, and she starts collecting when she is 9.  In either case it appears that she can get at least 50% of my payment.

 

I did some simple math and she gets slightly more if I wait until 66.4, but starting my benefit at 62.5 looks more attractive now.  I think putting her $700 a month into tax free muni bond funds would be a great long term investment for her and she would have a great nest egg started.

 

My decision is still in the future but I was wondering if anyone could offer any experiences in collecting SSI for their kids.

 

SSI link:

 

http://www.socialsecurity.gov/pubs/EN-05-10085.pdf

[MikeB]

What you're referring to is SS Benefits for Dependents, not SSI that's a different program. When you start collecting SS Retirement benefits your dependent children under 18 will be eligible. The amount depends on your total benefit. The first step is to get a SS # for the child if you haven't already. When you are almost ready to start benefits you should contact the SS office in the Embassy in Manila, they can walk you though it. 

[OnMyWay]

What you're referring to is SS Benefits for Dependents, not SSI that's a different program. When you start collecting SS Retirement benefits your dependent children under 18 will be eligible. The amount depends on your total benefit. The first step is to get a SS # for the child if you haven't already. When you are almost ready to start benefits you should contact the SS office in the Embassy in Manila, they can walk you though it. 

 

Yes, your right.  I got started calling it SSI incorrectly from talking to someone else.

[chris49]

New member, this is my first post. Been in Phils 9 years and have 2 kids under 18.

 

I wonder about $700/month for each child. It could be if the party was on maximum SS I guess.

 

My experience. I am an Aussie who became a US Citizen. I worked 13 years in the USA way back and I get just above the minimum. $804/month.

 

My benefit is $580.  When my 2nd child was born The benefit was split, $290 each.

 

Each year when you get your SS raise, the formula is recalculated and the amount will bump up a little.

 

I have a few friends getting the same. The amount is about 80% of your SS award, eg $1000/ you would get $800. Split between the number of kids.

 

If you die the formula changes under the category of Survivors Benefits, as I understand up to 150% of your SS award, also up to age 18.

[MikeB]

The amount of dependent benefits is based upon the retiree's full retirement benefit or Primary Insurance Amount (PIA). If you retired before reaching full benefit age your dependent(s) benefit would be based upon your PIA, not what you're currently getting. That may affect someone's decision on when to start receiving benefits.

If there's 1 dependent the benefit is 50% of the retiree's PIA. If there are multiple dependents they use a formula to determine maximum family benefits. The retiree's benefit amount is first deducted and the remainder is split equally among the number of eligible dependents. 

[davewe]

The amount of dependent benefits is based upon the retiree's full retirement benefit or Primary Insurance Amount (PIA). If you retired before reaching full benefit age your dependent(s) benefit would be based upon your PIA, not what you're currently getting. That may affect someone's decision on when to start receiving benefits.

If there's 1 dependent the benefit is 50% of the retiree's PIA. If there are multiple dependents they use a formula to determine maximum family benefits. The retiree's benefit amount is first deducted and the remainder is split equally among the number of eligible dependents. 

I just talked to SS recently about this planning my retirement. As noted before the benefit for 1 child is approx. 50% of the benefit of the primary upon retirement. That lasts till 18 unless the child is still in high school in which it can last until 19.

 

The total maximum family benefit possible is defined as 180% of the primary's benefit.

 

I have a 15 year old and depending on when I retire, she may benefit for a year or so. And then there's the child or 2 my wife is planning. 

 

Life is good!

[Jack Peterson]

And then there's the child or 2 my wife is planning. 

 

Isn't it Odd how they always get the last Word. I hope she is going to involve you in this Plan  :hystery:

 

JP :tiphat:

[Thomas]

I did some simple math and she gets slightly more if I wait until 66.4, but starting my benefit at 62.5 looks more attractive now.

There are other factor(-s) too:

/NOT inflation IF it's fully compensated.

/But if you find something good to INVEST the money in.

 

IF not being scamed, then there are several rather easy good investments in Phils e g "harvest sharing"   (=One finance, an other do the work. The finasiere get the money back plus 25-33 % of the rest normaly.)

EARLIER I had planed to get totaly DOUBLE retirement pay per year by waiting, because I plan to get older than 82 years old   :)   which is the break even if only thinking of how much is got in retirement pay,

but because of the investment posibilities I have changed my mind to start geting retirement pay direct at retirement age.

 

(Concerning benefits for kids, Sweden have if the Swedish parent DIE before the kid is 19.  Some extra pay for EACH kid up to 5 (?) kids.)

[OnMyWay]

On 2/14/2015 at 6:38 AM, MikeB said:

The amount of dependent benefits is based upon the retiree's full retirement benefit or Primary Insurance Amount (PIA). If you retired before reaching full benefit age your dependent(s) benefit would be based upon your PIA, not what you're currently getting. That may affect someone's decision on when to start receiving benefits.

If there's 1 dependent the benefit is 50% of the retiree's PIA. If there are multiple dependents they use a formula to determine maximum family benefits. The retiree's benefit amount is first deducted and the remainder is split equally among the number of eligible dependents. 

I'm reviving this old thread as I have some new information.  It might help some of you determine when to take SS if you have kids.

My 2 kids received their SS award letters last week and I was disappointed to see the amounts were a lot less than I had anticipated.  After MikeB had posted here in this thread that a kid will get 50% of the retiree's PIA, I was excited because it seemed to really bump up my kids payments.  Before this, I thought they would get 50% of my actual age 62 early retirement benefit, not 50% of my PIA. 

First, some terms for clarity:

FRA - Full retirement age.  Depends on you birthday.  Mine is 66.4 years.

PIA - Primary Insured Amount - The amount of money you get at FRA. 

FMB - Family maximum benefit.  Each SS primary beneficiary has a FMB calculated and you can find it on your statement or online.

Early retirement - Getting your SS at age 62 or anytime before FRA.

This table has your FRA based on your birthday, and shows the % reduction you will take with an age 62 early retirement.  Mine is a 26.67% reduction.  So at age 62, I get 73.33% of my PIA.

https://www.ssa.gov/OACT/quickcalc/earlyretire.html

Back to the kids.  It really doesn't matter if it is kids, spouse or caretaker when these rules come into play.

Using these numbers as examples for 2 kids.

PIA: 2000

Age 62 amount: 1500

Family maximum:  3700

I thought the way it was done was like this, for a 2 kids example:

Age 62 amt:              1500

Kid 1:  50% of PIA = 1000

Kid 2:  50% of PIA = 1000

Total                            3500    <<<<  Below the family max of 3700

Nope.  This is how they do it when claiming at 62:

Family max:               3700

Deduct PIA:                2000

Leftover                       1700

Leftover split between the 2 kids is 850 each.

What if you had a wife and 2 kids claiming?  Same math except the leftover 1700 is split 3 ways, about 566 each.

What if you just had just one kid and no wife claiming?  Then the one kid would get the full 50% of the PIA, 1000, because the leftover 1700 more than covers it.

So, the pain in this method is that they use your PIA in the family max calculation, not the actual amount you are getting at age 62.

In most cases it will still be beneficial to take SS at age 62 if you have kids who will get it too.  In my case, comparing age 62 to age 66.4, my break even is about age 87.  If I live longer than age 87, it would have been better to wait until age 66.4 to start SS.

 

 

[earthdome]

Thanks for the update OMW. Great information for those older US citizens with young families. In my case we reached the max with one child and benefits for my wife as caregiver just like you did for two children.